ND1122112

Title: USDA Targets Food Stamp Fraud

Description: The USDA says food stamp trafficking is increasing among the 199,000 small stores that process food stamp transactions.

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PROVIDENCE, RI ? Food stamp trafficking is on the rise in the U.S., with thousands of small retailers suspected of exchanging lesser amounts of cash for their stamps and then redeeming them at face value, the Associated Press reports.

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The ?swindle,? according to the U.S. Department of Agriculture (USDA), is diverting as much as $330 million in taxpayer funds each year, and nearly 600 convictions have been made over the past three years, resulting in $197.4 million in fines.

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The food stamp transactions are electronically recorded, and the USDA has been closely monitoring thousands of small retailers, including convenience stores, in an effort to stop potential fraud. To that end, the agency last month awarded a 10-year contract to Fairfax, Virginia-based SRA International Inc. to help detect misuse.

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"It's misuse of the program. It's a misuse of taxpayer dollars at a tough time. Not only the people who need the program are having a tough time, but the people who are paying for the program are having a tough time, too," said Kevin Concannon, USDA undersecretary for food, nutrition and consumer services.

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The fraud typically unfolds when a store clerk allows a customer to turn in their stamps for lesser amounts of cash, who then purchases items that are not allowed under USDA rules, like soap and over-the-counter medication.

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Last year, 931 stores were dismissed from the food stamp program for fraud, while 907 were sanctioned on lesser violations.

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Content Subject: Operations

Formatted Article Date: November 22, 2011

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